A Green New Deal?

In her newstatesman.com blog, Green Party leader Caroline Lucas says it's time to make finance the s

After the bursting of the credit bubble in August, 2007 Alastair Darling repeatedly assured us that Britain’s ‘economic fundamentals’ are sound. The implication was that the ‘real’ economy was quite distinct from the bubble economy inhabited by bankers, short-sellers and hedge fund managers. Consumers were given the impression that a firewall existed between them and the bursting credit bubble.

It now turns out that there is no firewall; even the chancellor has to acknowledge negative feedback loops between the financial economy and the real economy. It is not possible, after all, to compartmentalise within the economy, any more than it is possible to erect firewalls between the ‘real economy’, the credit bubble, and climate change.

It is clear that the three are inextricably linked.

Easy money has financed easy shopping, and easy shopping has boosted production and energy use in countries around the world. As we re-financed mortgages, maxed out on credit cards, invested in buy-to-lets, shopped for 4x4s, handbags and sports trainers.

So we burned more finite supplies of oil and coal, and this boosted manufacturing and production in far-away places, and powered economic growth. And as we burned up these precious, scarce resources, as we stripped more forests, farmed more land, fished more fish – so the earth grew more dangerously warm and less diverse.

Somehow, something, somewhere had give. These old ideas - that we could live forever on borrowed money and on borrowed time and that there are no limits to the earth’s resources – were a series of bubbles that had to burst.

The credit bubble was the first to go - on 9th August, 2007 when banks froze lending and plunged the global economy into a crisis that is still unfolding today, and becomes more terrifying as each day passes.

The shopping bubble has proved more resilient. While there are signs that UK consumer confidence is waning, the government’s national statistics office announced in August that growth, albeit moderate growth “in retail sales volume is driven by strength in clothing and footwear stores.”

So we are still shopping for clothes and shoes. So much so that developers are confident enough to open three new massive shopping centres in London, Liverpool and Bristol.

But while we shop, an even graver threat than the financial crisis is looming: the ‘bursting’ of the greenhouse gas bubble.

The melting of Arctic sea-ice, the rise in methane emissions, rapid de-forestation and increased droughts all create positive feedback effects. Forests are no longer carbon dioxide absorbers, but instead produce carbon dioxide. Thick permafrost no longer bottles up methane; instead it melts, spewing out methane and magnifying climate change.

And still the Labour government baulks at the scale and urgency of the threat to our security. And at the scale of adjustment, adaptation and investment needed to address the threat. Britain’s economy must undergo a major structural adjustment, to adapt to the threat posed to our security by climate change.

But, while the financial adjustment is already happening - albeit chaotically - the economic adjustment has yet to be addressed.

Just two weeks ago Labour ministers seemed to promise an expansion of airports, motorways and coal-fired power stations. We were offered no leadership, no vision of the much more ambitious drive for energy efficiency that is needed, or of the large-scale alternative energy investment that is vital to our security.

What is the way forward? Along with eight other green economics experts, I have co-authored a report that shows us the new direction we need.

We need a Green New Deal, based on increased regulation of the finance sector, so that finance once again becomes servant to the economy. As in the New Deal era of the 1930s, we need low interest rates and minimal tax evasion if we are to finance the massive investment needed for a multi-billion pound crash programme to make every building in the country a power station, while maximising the UK’s use of small and large-scale renewables. We need to mobilise a carbon army of green-collar workers to implement this programme. Finally we need to localise the production of food, and build a more sustainable local economy in food and other resources.

It is only such a programme that could give the people of Britain hope; that could help Britain survive this crisis, and enable our citizens to live better, more happily, and within the limits of our ecological budgets.

Caroline Lucas is the MP for Brighton Pavilion.

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To heal Britain’s cracks, it’s time for us northern graduates in London to return home

Isn’t it time for people like me, who’ve had privileges and experiences not open to everyone, to start heading back to our local communities, rather than reinforcing London’s suffocating dominance?

I’m from Warrington. The least cultured town in the UK. My town.

I moved to London almost exactly five years ago. Not because I particularly wanted to. Not because I wanted to depart the raucous northern town that I still call home. Because it was my only choice, really. I’d done my stint in the call centres and had some fun. But that couldn’t, surely, be my lot?

After university, I’d already started feeling a little weird and out of place back in Wazza. There were fewer and fewer people who didn’t look at me like I’d just fallen off a futuristic space flight that’d given me a different accent and lofty ideals.

Of course, that’s because most people like me had already skipped town without looking back and were all in the capital trying to strike beyond the ordinary.

The young, the cities, the metropolitan elite are still reeling after last week’s vote and wondering how people, half of our people, have got it so horribly wrong. We’re different, divided, done for.  

One thing I’ve clung onto while I’ve been in London is the fact that I’m from Warrington and proud. It might not be a cultured town, but it’s my town.

But I wasn’t proud of the outcome of the EU referendum that saw my town vote 54.3 per cent to 45.7 per cent to leave.

To be fair, even in my new “home” borough of Hackney, east London, the place with the third-largest Remain vote, one in five people voted for Brexit.

Yes, in one of London’s hottest and most international neighbourhoods, there are quite a lot of people who don’t feel like they’re being taken along to the discotheque.

Perversely, it was the poorest places in the UK that voted in largest numbers to leave the EU – that’s the same EU that provides big chunks of funding to try to save those local economies from ruin.

In many ways, of course, I understand the feelings of those people back in the place I still sometimes think of as home.

Compared to many suffering places in the UK, Warrington is a “boom town” and was one of the only places that grew during the last recession.

It’s a hub for telecoms and logistics companies, because, ironically, its good transport links make it an easy place to leave.

But there are many people who aren’t “living the dream” and, like anywhere else, they aren’t immune from the newspaper headlines that penetrate our brains with stories of strivers and scroungers.

Warrington is one of the whitest places in the UK, and I’m sure, to many locals, that means those immigrants are only a few towns away. There’s already a Polski sklep or two. And a few foreign taxi drivers. Those enterprising bastards.

We have never seriously addressed the economic imbalance in our economy. The gaping north-south divide. The post-industrial problem that politicians in Westminster have handily ignored, allowing the gap to be filled by those who find it quick and easy to blame immigrants.

When schemes like HS2, which is plotted to smash right through the place I grew up, are pushed against all of the evidence, instead of a much-needed, intercity Leeds to Liverpool investment to replace the two-carriage hourly service, it’s like positively sticking two fingers up to the north.

But I am also a big problem. People like me, who get educated and quickly head off to London when things aren’t going our way. We invested in ourselves, sometimes at state expense, and never really thought about putting that back into the places where we grew up.

There weren’t the right opportunities back home and that still stands. But, rather than doing something about that, people like me lazily joined the gravy train for London and now we’re surprised we feel more kinship with a 20-something from Norway than we do with someone who we used to knock on for when we should have been at school.

That’s not to suggest that our experiences in the capital – or mine at least – haven’t made us a thousand, million times better. 

I’ve met people who’ve lived lives I would never have known and I’m a profoundly better person for having the chance to meet people who aren’t just like me. But to take that view back home is increasingly like translating a message to someone from an entirely different world.

“You know, it’s only because you live in a country like this that a woman like you is allowed to even say things like that,” assured one of my dad’s friends down at the British Legion after we’d had a beer, and an argument or two.

Too right, pal. We live in what we all like to think is an open and tolerant and progressive society. And you’re now saying I shouldn’t use that right to call you out for your ignorance?

We’re both Warringtonians, English, British and European but I can increasingly find more agreement with a woman from Senegal who’s working in tech than I can with you.

It’s absolutely no secret that London has drained brains from the rest of the country, and even the rest of the world, to power its knowledge economy.

It’s a special place, but we have to see that there are many people clamouring for jobs they are far too qualified for, with no hope of saving for a home of their own, at the expense of the places they call home.

It’s been suggested in the past that London becomes its own city-state, now Londoners are petitioning to leave the UK.

But isn’t it time for people like me, who’ve had privileges and experiences not open to everyone, to start heading back to our local communities, rather than reinforcing London’s suffocating dominance?

We can expect local governments to do more with less, but when will we accept we need people power back in places like Warrington if we want to change the story to one of hope?

If this sounds like a patronising plan to parachute the north London intelligentsia into northern communities to ensure they don’t make the same mistake twice... Get fucked, as they say in Warrington.

It was Warrington that raised me. It’s time I gave something back.

Kirsty Styles is editor of the New Statesman's B2B tech site, NS Tech.